Audit Committee Report
Responsibilities Te Audit Committee monitors and reviews areas such as risk management, internal controls and the integrity of financial reporting both internally and externally. Te Audit Committee is also responsible for making recommendations to the Board on the appointment of the external auditor and assessing the auditor’s independence and objectivity. Te Committee is also responsible for monitoring the auditor’s effectiveness and agreeing the terms of the auditor’s engagement. It receives reports on these issues from the relevant Executive Directors and reports back to the Board on the action points within those reports and any recommendations arising. As part of these responsibilities it considers the requirement for an internal audit function.
Te full terms of reference of the Audit Committee are reviewed periodically by the Board and updated as necessary. A copy can be found on the Company’s website at
www.finsburyfoods.co.uk.
Membership Te Audit Committee is chaired by me, Raymond Duignan, the other member being Edward Beale, a Non-Executive Director. Both committee members are considered by the Board to be independent Directors. Edward Beale, a chartered accountant, was a member of the Accounting Council of the FRC until August 2013 and therefore has recent and relevant financial experience.
Procedures Te Audit Committee met three times during the year. Te Finance Director is invited to attend Committee meetings and the external auditors are invited to attend any meetings involving the Financial Statements, the annual audit and other significant matters. Time is set aside during at least one meeting each year for the Committee to hold discussions in private with the external auditors in the absence of management and Executive Directors.
Risks and Controls Group management prepare an Annual Report for the Audit Committee’s consideration that identifies the risks and uncertainties to which the Group is exposed, the procedures in place to mitigate those risks and uncertainties and the potential impact on the Group. Te Audit Committee reviews this report and any concerns that it has over the adequacy of the controls in place, or the level of risk accepted by the Group, are reported to the Board. Te principal risks and uncertainties to which the Group is exposed are considered by the Board and are set out in the Strategic Report on page 8.
Te Committee reviews the need for an internal audit function on an annual basis. At present, due to the size of the Group and lack of complexity in the business model, the Committee does not believe that a dedicated full time internal audit function is warranted. Additional resource has been recruited to assist with the reporting of risks, policies and procedures. A programme of rolling internal control and risk reviews is monitored by the Committee which considers reports on these reviews at each meeting.
External Reporting Te Board delegates primary responsibility for the preparation of complete, balanced and accurate Financial Statements and disclosures, in accordance with Financial Reporting Standards and regulations, to the Finance Director. Te responsibility of the Audit Committee is to consider significant accounting policies, any changes in policies and significant estimates and judgements, taking into account the external auditors’ view, and to report back to the Board on any concerns that it might have. Te Audit Committee reviews and comments on the clarity and completeness of disclosures within the Financial Statements. Ultimate responsibility for reviewing and approving the annual Financial Statements and half yearly reports remains with the Board.
Te Audit Committee also reviews and comments on related information presented with the Financial Statements, in particular the Strategic Report, the Directors’ Report and the Report on Corporate Governance.
Key Agenda Items During the year, the Committee specifically discussed issues arising from:
• Interest rate and currency hedging • Review of risks and appropriate level of internal controls • Systems, purchasing and IT security review • Impairment reviews • Dividend policy • Group insurance renewal • Pension disclosures.
Certain services relating to taxation, pension, due diligence and IT systems review advice has been received and/or is proposed to be received by the Group’s auditor. All non-audit services are subject to and have been approved in advance by the Audit Committee Chairman. Te Audit Committee does not believe it compromises the auditor’s independence as the Auditor’s ethics and independence policies and procedures are fully consistent with the requirements of the APB Ethical Standards.
If any reader of these accounts has suggestions for improvement in the content or the presentation of the Financial Statements, please can they let me know by writing to
info@finsburyfoods.co.uk.
Raymond Duignan Chairman of the Audit Committee
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